Late-Stage Base Failure Supplies Short-Sale Setup

The inaugural column of "The Short Side" delved into the head-and-shoulders pattern, one of two major chart bases you need to know to sell former market winners short with success. The other major setup is a late-stage base breakout failure. First, let's define the base. It's nothing more than a period of time in which a great stock takes a break after rising 20% or more from a prior entry point. ...

The Short Side is a subscriber feature. Take a free trial now to get instant access.

Try the Digital + Weekly Print Combo and enjoy the best of both worlds!eIBD is available after market close to give you a head start on the next day's market action. Plus, you get the Weekly Special print edition delivered right to your home or office!

Select market data is provided by Interactive Data Corp. Real Time Services. Price and Volume data is delayed 20 minutes unless otherwise noted, is believed accurate but is not warranted or guaranteed by Interactive Data Corp. Real Time Services and is subject to Interactive Data Corp. Real Time Services terms. All times are Eastern United States. *Reflects real-time index prices.